How should my ex and I claim a prior year state refund received while married and filed together, but now we're divorced filing separately?

[SeanE1 · Accepted solution]

If you were married and filed a joint tax return itemizing your deductions, like deducting mortgage interest, property taxes, medical, contributions, etc..., you will each have to report your share in 2016.  You would divide the amount reported on the 1099-G between you and your former spouse. Sometimes a divorced couple divide the 1099-G based on their proportion of income to the total income reported for both spouses on their tax return for that year, (I.e., If you made $75,000 and your spouse made $25,000, you would report 75% of the amount on the 1099-G and your spouse would report 25%), or you could just split it 50/50.  There is no set rule, it's up to the both of you.

If you did not itemize deductions last year, the refund is not taxable to you or your spouse.